How to examine a broker?

adria · #11 (**permalink**) 06-08-2010, 11:32

Jason have given some important points. After you decide which conditions are important for you, you can compare forex brokers online. There is no single best forex broker out there. But it will help you find the one that suits your needs the best.

sabrinathomas · #12 (**permalink**) 10-08-2010, 04:15

Quote:

Originally Posted by jason

When checking out a forex broker, look for these details:

1. Margin provided (usually 1-4%)
2. Their spreads for the currencies you’ll be trading (the EURUSD will usually be 3-4 pips)
3. Amount of funds required to start an account
4. Any fees for small trade sizes (many don’t charge fees for smaller trade sizes, but some do)
5. Any other fees (there will be rollover fees for positions held overnight with any provider, which are usually small, though the details of this fee can vary)
6. Whether the broker automatically closes your position if the position goes against you by the entire value of your account not used as margin for that trade
7. What their charting package and forex trading platform is like
8. Whether the trading platform provide a demo account for you to practice on

Hey Jason,

You are absolutely right. before start trading with any broker we must check these all things like spreads, order execution speed, order execution accuracy, the trading software and margin. some more thing are important such as in how many currencies transaction does a broker provide, how technically good the trading software which a broker is providing to you, and Will that broker provide some recommendation or tips, if yes then check the tips, How many tips are profitable.

Jptrader · #13 (**permalink**) 11-08-2010, 23:19

I also have an account with FXOpen, the only problem as you highlighted if they do go bankrupt, or they take unnecessary risks, my account is on the line. That is all my money gone. I started off by spreading the risk within other accounts, just lately I found easy-forex that are regulated in the US AU and EU so i am feel safe: if you want to have a look

JP
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http://forex-trading.easy-forex.org.uk/

adria · #14 (**permalink**) 17-08-2010, 08:16

Hi there,

One way to handle your forex trading is to use a tested system and a money management strategy. There is no room for emotion when forex trading, so you will need to use a business-like approach that has been tested on market data. Using a tested approach will save you a lot of stress when forex trading. Also, using a sound money management strategy will allow you to use your capital in the best way when forex trading so that you can maximize profit and avoid major losses.

jackie101 · #15 (**permalink**) 21-08-2010, 11:54

Every FX traders (Newbie or Experienced) need to open an account with a Forex broker in order to start trading. So what exactly is a broker or brokerage house? To put it simply, a broker is a company that place your buys or sells orders according to your decisions. Brokers earn money by charging a commission or a fee for their services.

When you started to pick up trading or get in touch with trading FX. You may feel overwhelmed and jump the gun at the first brokerage house that was introduced to you. My advise is, don't be lazy and DO YOUR HOMEWORK!!

Check out these details in your broker:
Is the Forex broker regulated?
Online Trading Platform
Customer Service
Mini & Micro Accounts
Broker Policies

shirley · #16 (**permalink**) 21-08-2010, 12:43

Before picking any broker, make sure you examine their company and background as thoroughly as you possibly can. Some good signs of a reliable Forex broker are the length of the time they have been in operation and if they are a member of any financial regulating bodies found in various countries that currently try to regulate the Forex market. You need to find a broker that you are comfortable with and not need to worry about them closing up shop without warning.

JuliaKhanam · #17 (**permalink**) 04-09-2010, 09:47

Before trading Forex you need to set up an account with a Forex broker. So what exactly is a broker? In simplest terms, a broker is an individual or a company that buys and sells orders according to the trader's decisions. Brokers earn money by charging a commission or a fee for their services.

You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.

______________________
Forex Decoder

goldie123 · #18 (**permalink**) 01-10-2010, 15:36

In theory, a dishonest broker could... but keep in mind they cannot move their prices just for you, they would need to move them for all their clients - therefore it is much harder than most people think (and if you ever catch them doing it, it is very easy to begin trading against them simply by comparing charts with a 2nd broker - sooner or later, prices must return back to "normal").

Typically, the dishonest brokers will take a much simpler approach to cheating their clients - requotes and slippage. I happen to know that FxPro isn't one of these, however, because I trade through them too. And I've seen slippage (when it does occur in fast-moving markets) just as often work to my favor as against me (I close a trade and get more than I expected out of it) - so I know it is just random market forces and not them manipulating anything.

shirley · #19 (**permalink**) 23-10-2010, 11:00

Another important thing you need to check into is the reliability of a forex broker. A safe forex broker will always be attainable for help and advice-24/7. You can read reviews from other traders about which forex brokers are safe and which ones are not. Make sure that you do a lot of research and reading before deciding, so that you will end up with a reliable, affordable, and safe forex broker.